Korea Trade Balance

Korea: Trade surplus narrows on falling exports

May 13, 2014

According to the Korea Customs Services, the value of exports totaled USD 47.9 billion in May. The print represented a 0.9% contraction in annual terms and contrasted the 9.0% expansion registered in April. This marked the sharpest decrease in merchandise exports since September 2013.

Imports increased a lackluster 0.3% annually in May, which drove the value of imports to USD 42.5 billion. The reading marked a deceleration compared to the 5.0% expansion observed in April. As a result of the contraction in exports in May, the trade balance recorded a USD 5.3 billion surplus, which was slightly down from the USD 5.9 billion observed in the same month last year. In the 12 months up May, the trade surplus reached USD 45.1 billion (April: USD 45.6 billion).

FocusEconomics Consensus Forecast panelists expect exports to expand 8.6% in 2014 and to accelerate to 9.1% in 2015.

Industrial production in the mining, manufacturing, gas and electricity sectors decreased 6.0% in December compared to the same month last year, more than the revised 1.7% decrease in November (previously reported: -1.6% year-on-year).